24. - (1) The licence holder to which a final or provisional order relates has a duty to comply with it.

(2) The duty is owed to any person who may be affected by a contravention of the order.

(3) A breach of the duty which causes such a person to sustain loss or damage is actionable by him.

(4) In proceedings brought against a licence holder under subsection (3) it is a defence for it to prove that it took all reasonable steps and exercised all due diligence to avoid contravening the order.

(5) Compliance with a final or provisional order is also enforceable by civil proceedings brought by the CAA for an injunction or for interdict or for any other appropriate relief or remedy.

(6) Subsection (5) does not prejudice a right a person may have by virtue of subsection (3) to bring civil proceedings for contravention or apprehended contravention of a final or provisional order.

Power to obtain information.

25. - (1) This section applies if it appears to the CAA that a licence holder may have contravened or may be contravening or is likely to contravene a licence condition.

(2) For any purpose connected with such of the CAA's functions under section 21 as are exercisable in relation to the matter it may serve on any person a notice which-

(a) requires the person to produce any documents which are specified or described in the notice and are in his custody or under his control, and to produce them at a time and place so specified and to a person so specified, or

(b) requires the person to supply information specified or described in the notice, and to supply it at a time and place and in a form and manner so specified and to a person so specified.

(3) A requirement may be made under subsection (2)(b) only if the person is carrying on a business.

(4) No person may be required under this section-

(a) to produce documents which he could not be compelled to produce in civil proceedings in the court;

(b) to supply information which he could not be compelled to supply in such proceedings.

(5) If a person without reasonable excuse fails to do anything required of him by a notice under subsection (2) he is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(6) If a person intentionally alters, suppresses or destroys a document which he has been required to produce by a notice under subsection (2) he is guilty of an offence and liable-

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to a fine.

(7) If a person makes default in complying with a notice under subsection (2) the court may on the CAA's application make such order as the court thinks fit for requiring the default to be made good.

(8) An order under subsection (7) may provide that all the costs or expenses of and incidental to the application are to be borne-

(a) by the person in default, or

(b) if officers of a company or other association are responsible for its default, by those officers.

(9) A reference to producing a document includes a reference to producing a legible and intelligible copy of information recorded otherwise than in legible form.

(10) A reference to suppressing a document includes a reference to destroying the means of reproducing information recorded otherwise than in legible form.

(11) A reference to the court is to-

(a) the High Court in relation to England and Wales or Northern Ireland;

(b) the Court of Session in relation to Scotland.

Administration orders etc.

Protection of licence companies, etc.

26. - (1) No licence company may be wound up voluntarily.

(2) No application may be made to a court for an administration order under Part II of the 1986 Act in relation to a licence company, and-

(a) anything purporting to be such an application is of no effect;

(b) no administration order may be made under that Part in relation to a licence company.

(3) No step may be taken by a person to enforce any security over the property of a licence company unless the person has given to the Secretary of State and the CAA at least 14 days' notice of his intention to take the step.

(4) No application for the winding up of a licence company may be made by a person other than the Secretary of State unless the person has given to the Secretary of State and the CAA at least 14 days' notice of his intention to make the application.

(5) In subsection (3) "security" and "property" have the same meanings as in Parts I to VII of the 1986 Act.

(6) In this section and sections 27 to 30-

(a) references to a licence company are to a company which holds a licence;

(b) references to the 1986 Act are to the Insolvency Act 1986.

Duty to make order.

27. - (1) This section applies if an application is made to any court for the winding up of a licence company.

(2) The Secretary of State and the CAA are entitled to be heard by the court.

(3) The court must not make a winding up order.

(4) But if the court is satisfied that it would be appropriate to make a winding up order if the company were not a licence company, it must instead make an air traffic administration order.

(5) A reference to the court is to the court which (but for this section) would have jurisdiction to wind up the company.

Power to make order.

28. - (1) The court may make an air traffic administration order in relation to a licence company if-

(a) an application by petition is made by the Secretary of State or by the CAA with his consent, and

(b) the court is satisfied that one or more of the following five conditions is satisfied.

(2) The first condition is that the company is or is likely to be unable to pay its debts.

(3) The second condition is that-

(a) the Secretary of State certifies that but for section 27 it would be appropriate for him to petition for the company's winding up under section 124A of the 1986 Act (petition following inspectors' report etc), and

(b) but for section 27 it would be just and equitable (as mentioned in section 124A) for the company to be wound up.

(4) The third condition is that-

(a) there has been or is or is likely to be a contravention by the company of a section 8 duty,

(b) no notice has been served under section 16(9) in relation to the contravention or apprehended contravention, and

(c) the contravention or apprehended contravention is serious enough to make it inappropriate for the company to continue to hold the licence concerned.

(5) The fourth condition is that-

(a) a final or provisional order has been made or confirmed in relation to a section 8 duty,

(b) the order is not the subject of proceedings under section 17, and

(c) there has been or is or is likely to be such a contravention of the order by the company as to make it inappropriate for it to continue to hold the licence concerned.

(6) The fifth condition is that-

(a) a final or provisional order has been made or confirmed in relation to a licence condition,

(b) the order is not the subject of proceedings under section 23, and

(c) there has been or is or is likely to be such a contravention of the order by the company as to make it inappropriate for it to continue to hold the licence concerned.

(7) For the purposes of subsection (2) a company is unable to pay its debts if it is deemed to be unable to do so under section 123 of the 1986 Act.

(8) A reference in subsection (4) or (5) to a section 8 duty or to a final or provisional order is to be construed in accordance with section 15.

(9) A reference in subsection (6) to a licence condition or to a final or provisional order is to be construed in accordance with section 21.

(10) A reference to the court is to the court which (but for section 27) would have jurisdiction to wind up the company.

Air traffic administration orders.

29. - (1) An air traffic administration order made under section 27 or 28 is an order directing that in the period while the order is in force the company's affairs, business and property are to be managed by a person appointed by the court-

(a) for the achievement of the following two purposes, and

(b) in a manner which protects the interests of the company's members and creditors.

(2) The first purpose is-

(a) the transfer to another company, as a going concern, of so much of the licence company's undertaking as it is necessary to transfer to ensure that its licensed activities may be properly carried out, or

(b) the transfer to different companies of different parts of the licence company's undertaking, as going concerns, where the parts together constitute so much of its undertaking as is described in paragraph (a).

(3) The second purpose is the carrying on, pending the transfer, of the licence company's licensed activities.

(4) A reference to a licence company's licensed activities is to the activities which the licence concerned authorises the company to carry out.

(5) In subsection (1) "business" and "property" have the same meanings as in the 1986 Act.

(6) The reference in subsection (1) to the court is to the court making the order.